The RBI’s Retail Direct Scheme, unveiled by Prime Minister Narendra Modi, constitutes a significant step forward in the development of the government securities (G-sec) market. The initiative will make G-secs, the government’s debt instruments, more accessible to the general public by simplifying the investment process.
The scheme’s aim is to provide investors with a safe, simple, direct, and secure platform. Here is how it works:
- Under the Scheme, Individual retail investors will be able to open a Retail Direct Gilt (RDG) account with the RBI through an online portal https://rbiretaildirect.org.in.
- Investments can be made using the following routes:
Primary issuance of government securities: Investors can place bid as per the non-competitive scheme for participation in primary auction of government securities and procedural guidelines for SGB issuance.
Secondary market: Investors can buy and sell government securities on NDS-OM (‘Odd Lot’ and ‘Request for Quotes’ segments).
- Payments for transactions can be done conveniently using saving bank account through internet-banking or UPI.
- Investors can obtain help and other support facilities on the portal itself and also through a toll-free telephone number 1800–267-7955.
- Investor services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities and gift transactions.
- No fees will be charged for facilities provided under the scheme.